Microcredit in Belgium Focus on the ImpulsKrediet

Transcription

1 Microcredit in Belgium Focus on the ImpulsKrediet Informal Meeting Prague 12th March 2012 Marion Cahen

2 1. Hefboom a. Credit 1985 Through cooperative Target group Products b. Coaching Created from the financial department Through foundation Target group Products 2

3 2. Microcredit Mission: provide appropriate financing for bank-excluded people, in order to start up their own businesses Brussels (Flemish speaking) and Flanders Partnership Hefboom Dexia Foundation (Bank) (to become : BELFIUS) Funding to be re-used: yes but Is microcredit a sustainable activity? no but 3

4 From 2007 to 2011: The Solidarity Loan Results credit requests processed 45 proposed for approval to the Board 22 approved Comparison year before More demands Higher selectivity of the Board Not enough coverage to justify the funding 4

5 From 2012 on New Microcredit: The ImpulsKrediet Objectives: 40 credits in 2012, 70 in 2013, 110 in 2014, 150 in 2015 Higher lending possibilities More local inbedding Better partnerschips with Business Support Services Funding, guarantee Quality guaranteed 5

6 Target Group Impulskrediet GO Impulskrediet START Impulskrediet PART Impulskrediet COOP Starters or existing enterprises and self-employed Min amount EUR EUR In combination with the Starters Loan of Participation Fund For self-employed part-time (next to a full or part-time job) Max amount EUR EUR EUR EUR Duration 4 years 3 years : 1 e years 50% terugbetalen; 2 e en 3 e years elk 25% Opnametermijn 3 months 3 months 4 years 2 years For self-employed trying out a business in an activitycooperative Capital free repayment Interest Own Capital 3 months None 3 months None 6% (not market condition but no discounted rate either) < EUR: Not > EUR: 20% of the amount above EUR (up to % 6% 6% Not Not Not Monthly repayments) EUR (4y) EUR (4y) EUR (4y) EUR (4y) EUR (4y) EUR (4y) 62.5 EUR EUR EUR EUR EUR EUR EUR (1 e y) (2 e en 3 e y) EUR (1 e y) (2 e en 3 e y) EUR EUR EUR EUR EUR (4y) EUR (4y) EUR (4y) 62.5 EUR EUR EUR EUR (2y) EUR (2y) EUR EUR Handling Costs Collateral EUR EUR EUR EUR 200 EUR 300 EUR 450 EUR 600 EUR EUR Not systematically only for at-risk credit applications 200 EUR EUR EUR EUR 100 EUR 200 EUR 300 EUR EUR EUR 100 EUR 200 EUR Coaching 2 years, free (Dexia Foundation) 6

7 3. ImpulsKrediet : Distributive Mechanism Partnership: 1. Hefboom: a) Front office and Back Office b) Credit Boards c) Coaching 2. Dexia Foundation a) Financial support b) Team of volunteer coaches 7

8 Financing the instrument Financing: 50% Hefboom 50% SIFO (Social Investment Fund) (Cost: 2%) Guarantee: Flemish Government Guarantee Facility (Participatiemaatschappij Vlaanderen): 75% (Cost: 0,5% ) Default Risk (expected):15 to 25% Hefboom own risk= 9,38% - to be covered by an intern guarantee fund (Handling costs, maybe public and private grants) 8

9 Operational costs 1. Grant from Agentschap Ondernemen (Flemish Government) for the handling costs 2 years 2. Grant from Dexia Foundation 9

10 4. Target Group The ImpulsKrediet is intended for People who would like to launch their own business Who do not have access to bank credit (social welfare, starting business, debts, no guarantee ) No extra social conditions. Few activities are excluded, mostly those who do not match Hefboom s values or where Flanders doesn t have any advantage (pure import/export) 10

11 4. Target Group (2) - Observations 50% is on welfare Majority lives alone 40% women Group at risk to fall below the poverty line Microcredit=> social re-integration 11

12 5. Process Business support services Before: coaching of the business plan if needed (Hefboom or Business Support Services or Application form is a mini-business Plan: first serious selection After: 24 months active support (Dexia Foundation) Every credit borrowers has to be coached in order to limit the default risk 12

13 Combination with European Funding Jasmine: monitoring/coaching EPMF (EIF): European Progress Microfinance Facility:from 100 loans a year ESF:? ERDF:? Depends on the issues new social Cohesion programma s 13

14 Thank you for your attention!